Kabel Deutschland (KDG) is seeking a new term loan of up to €500m under an existing credit agreement just days after securing a seven-year €1bn term loan.
Both new loans are to help refinance existing debt.
The German cableco said the new term loan…
Kabel Deutschland (KDG) is seeking a new term loan of up to €500m under an existing credit agreement just days after securing a seven-year €1bn term loan.
Both new loans are to help refinance existing debt.
The German cableco said the new term loan is expected to mature in June 2020 and to have a margin of 275 basis points over Euribor.
The proceeds will be used to repay the existing term loan E, which totals €500m and matures in June 2018.
KDG has asked existing and new lenders to submit their commitments to the new term loan by 24 April.
BNP Paribas and Deutsche Bank are joint coordinators and bookrunning MLAs for the transaction. ING, Morgan Stanley and the Royal Bank of Scotland are also bookrunning MLAs.
On Monday (15 April), KDG announced it had secured a new €1bn term loan under an existing credit agreement. This facility is set to mature in March 2020 and priced at 275 basis points over Euribor.
KDG has made numerous changes to its capital structure following its thwarted attempt to take over smaller rival Tele Columbus last year for a total €618m (US$789m). The German antitrust regulator, FCO, blocked the takeover in March after KDG refused to further improve previously-submitted remedies, however the cableco has since appealed the FCO decision.
A KDG spokesperson said it is difficult to comment on the company’s future financing plans, noting that “it all depends on market conditions and whether we see any improvements for our balance sheet”. However, he said that if the new term loan is executed within two weeks as expected, the company’s first maturities are not until July 2017, meaning there is no pressing need to do another financing.
Yesterday, German weekly Manager Magazin reported that US cableco Liberty Global, owner of Germany’s Unitymedia KabelBW, is working on an offer for KDG.
